LANGKAWI: Business folk on the resort island are relieved after the Federal Government delayed imposing tobacco tax here until March 31.
Langkawi Chinese Chamber of Commerce chairman Lee Han Eng said the move would benefit many businesses, especially petty traders, in the already weak economy.
“Tourists who come to the island can still buy cigarettes at duty-free prices, ” he said.
Kedah is under the conditional movement control order and domestic tourism is allowed, though only Kedahans get to enjoy Langkawi for now.
Lee said that from April 1 onwards, anyone buying the old stocks of tobacco products in Langkawi – marked “duty not paid” – could still enjoy the duty-free prices and tax would only be imposed if visitors decide to bring them out to the mainland.
Too quiet: Duty-free shops in Langkawi, reeling from the pandemic, may see a drop in business come Jan 1,2021.
IPOH: Tourism industry players in Pangkor believe the move to make cigarettes a taxable item on duty-free islands would largely affect duty-free shops but not so much the industry.
Resort manager Munir Shaari said the move would not be good news for duty-free shop operators as their businesses are expected to be affected.
“These businesses have only just started to pick up as Malaysians are allowed to travel locally again.
“I’m sure there will be an impact on the duty-free shops and maybe to a certain extent, some hotels.”